No. HUD offers no easy vehicle to pull cash out such as supplemental
loans. For merchant builders (developers who build and plan to sell within
a year or two), HUD is especially difficult to use due to the prepayment
penalty enforced as part of the loan.

HUD is best for sponsors who want to build and put the project “to bed” by
locking in a fixed rate, non-recourse loan for 40 years, or for sponsors who
want to build and then pull cash out as part of a formal refinance 5-10 years
down the road.